VAT rules for business owned cars

Most businesses we deal with consider a motor car to be an essential asset of their business.  Without a car they just would not be able to carry on their trade.  For VAT purposes a car is not treated like any other asset.  Special provisions apply to cars which apply to no other items.

VAT law has always treated cars in rather a special way primarily due to a high degree of private use.  Much to everyone’s dismay for most businesses, apart from the likes of a driving school, taxi firm or self drive hire business, VAT is not recoverable as input tax on the purchase of the car.  There are, however, provisions which mean that VAT can be claimed back on the purchase of a car if there is NO intention whatsoever that it should be made available for any form of private use.  In practice this is very difficult to fulfil.  It is not a case of not doing any private mileage in a business car, it is rather whether the car is available for private use.  If there is any chance of claiming input VAT back on a car which is to be used for business use only then steps must be taken to prevent private use, such as the vehicle insurance being for business use only, and/or prohibition on private use being included in contracts of employment.

So if you are unable to claim the input VAT back on the purchase of a car, what about the running costs?  The goods news here is that input tax is recoverable on all the running costs of a car such at repairs, service, new tyres etc without the need to make any restriction for private use.

Running costs do not however include road fuel whether petrol or diesel.  Input tax can be recovered in full on all purchases of road fuel for cars used by a business, even if there is some private mileage, as long as the VAT registered makes a standard adjustment on their VAT Return.  This is called the fuel scale charge and is based on the carbon dioxide emissions of the vehicle in question.   The higher the emissions the higher the scale charge:-

Quarterly Fuel Scale Charges and VAT thereon

The scale charge applies regardless of how little or how much private use the car has.

A business can opt not to adopt the fuel scale charge and in turn not recover input VAT.  However, care needs to be taken before going down this route as the decision would apply to ALL road fuel bought by the business for any vehicle.  It is not possible to elect to claim on specific vehicles.  It’s all or nothing!  So the likes of a haulage contractor who drives a Ford Mustang with carbon dioxide emissions of 299 g/km would be wise to pay the fuel scale charge of £82 a quarter, as if he doesn’t adopt the fuel scale charge he will be unable to claim the input VAT on the road fuel for his fleet of wagons – definitely not a good move!

There is a final option other than adopting the fuel scale charge but I rarely see people using this in practice.  This is to keep detailed mileage logs recording each business and private journey and only claiming input tax back on the business proportion of the road fuel expenditure.

Those are the VAT rules for business owned cars now but expect all this to change as more electric cars take to the roads in the years to come, along with all the changes re BREXIT!!

Cyndy Potter



Cyndy Potter,

Tourism & Leisure Manager


Revised advisory fuel rates from 1 March 2018

Company Owned Vehicles

HM Revenue and Customs have announced revised tax free advisory fuel rates from  1 March 2018 which may be paid for business journeys in a car owned by the business.   Rates for the previous quarter are shown in brackets.

Engine size Petrol Diesel LPG
1,400 cc or less 11p (11p) 7p (7p)
1,600 cc or less 9p (9p)
1,401 cc to 2,000 cc 14p (14p) 8p (9p)
1,601 cc to 2,000 cc 11p (11p)
Over 2,000 cc 22p (21p) 13p  (13p) 13p (14p)

These rates may be used in the following circumstances:-

  1. Where employers reimburse for business travel in company cars.
  2. Where employers provide fuel for company cars but employees are required to reimburse the cost of fuel for private use.

Input VAT claims on mileage paid for company cars OR employee owned vehicles

HM Revenue & Customs will accept the above figures for claiming input VAT on fuel for company cars, provided a VAT receipt is available to cover the cost of the fuel.  They will also accept use of the above rates by the employer when calculating input VAT on the fuel element for employees using their own vehicles and claiming mileage under the tax free approved mileage rates for business travel of 45p for the first 10,000 miles and 25p thereafter.

If you have not already done so, please update any spreadsheets you may use.

If you have any queries regarding the above or require any further information please do not hesitate to contact us.

What is Making Tax Digital, and how will it affect me?

What is Making Tax Digital, and How Will It Affect Me

A great many aspects of modern business have become streamlined and paperless thanks to cloud technology. And within the next few years, the government plans to add tax to that list with Making Tax Digital (MTD).

In a move that will bring about the end of paper accounting for millions across the UK, HMRC will deliver a digitally advanced, efficient, and modernised tax system to rival the best the world has to offer.

Starting from April 2019, businesses above the VAT threshold will be required to set up a digital tax account and file their returns online every quarter. But even if your business isn’t likely to exceed that threshold by that time, you should still make sure you’re prepared for the inevitable transition to digital tax returns.

In this post, we briefly explain the motivation behind MTD, how it will affect you, and when the change will take place.

Why is HMRC ͚Making Tax Digital͛?

The four core reasons behind Making Tax Digital are as follows:

1. To facilitate an efficient and effective use of information

Instead of consistently providing HMRC with the same information year after year, this approach to taxation will be smoother and smarter. HMRC will gather information from elsewhere (such as employers, banks, or other government departments) and you’ll be able to log into your account and view and update your details.

HMRC will then use this information to tailor its services according to your circumstances.

2. To provide access to real-time tax

With the introduction of MTD, you won’t need to wait until the year-end to discover how much tax you owe. HMRC will seek to collect and process information in as close-to-real-time as possible to give you an accurate and up-to-date view of your liabilities.

3. To provide taxpayers with a central financial account

Currently, you don’t have a central account where you can see a snapshot of your liabilities and entitlements. MTD will change that. By 2020, you’ll be able to log into your account and view a comprehensive picture of your personal tax situation – similar to online banking.

4. To interact digitally with customers

If you’ve ever been left on hold when calling HMRC, you’ll know just how frustrating it can be when trying to have a question answered or a problem solved. MTD will transform how you communicate with HMRC by giving you access to digital information, advice, and support via web chats and secure messaging. You’ll be able to ask and answer questions on your terms, rather than give up a morning or afternoon listening to the jazzy hold music as you’re passed between departments.

How will Making Tax Digital impact me?

Making Tax Digital will impact businesses and individuals alike. And, as outlined in this post by Xero, the good far outweighs the bad where MTD is concerned.

In short, you will be required to send a summary of your income and expenditure once a quarter via your digital tax account.

However, if your business is turning over less than £10,000 annually, you will be exempt from MTD.

And to begin with, only businesses with a turnover above the VAT threshold will be required to use the Making Tax Digital for Business system, starting in April 2019. If this applies to you, and you’re unsure if your current accounting system complies with MTD, we cover that query in this post.

When does Making Tax Digital happen?

Making Tax Digital is already happening, with a number of small pilot tests underway.

The following milestones are fast approaching:

  • Early 2018 – Live pilot of Making Tax Digital for VAT begins.
  • April 2019 – Businesses with a turnover above the VAT threshold will be mandated to keep digital records and submit quarterly returns for VAT purposes via their accounting software.
  • April 2020 – HMRC will look to expand the scope of Making Tax Digital, assuming the system is working as expected.

Don͛t Get Left Behind – Go Digital Now

Saint & Co has been around long enough to have experienced many of the major shifts in UK tax administration, and Making Tax Digital promises to be an exciting and welcome change to our relationship with tax.

We’ve kept our finger firmly on the pulse of this developing situation, and we can help you prepare to make the switch to keeping digital tax records.

Simply fill out our contact form, or call us on 01228 534371 to get started.

The Chancellor’s first Spring Statement

There were no new tax measures and no spending changes in the Chancellor’s first Spring Statement. The Office for Budget Responsibility (OBR) trimmed its projections for government borrowing, but Mr Hammond simply banked the savings for his Autumn Budget. Spending will be subject to a detailed review in 2019.

While the Chancellor appeared to say little, his statement was followed by the publication of a range of documents covering areas including:

  • Entrepreneur’s relief A consultation paper was published on how to give entrepreneurs’ relief in circumstances where it would otherwise be lost because of a new share issue.
  • VAT threshold The government issued a call for evidence on restructuring the VAT registration threshold to offer more incentives for small businesses to grow. There is some evidence that businesses deliberately limit growth to avoid crossing the existing £85,000 threshold (which has been frozen for the next two years).
  • Tax and the digital economy There were several papers examining taxation issues surrounding the digital economy, including VAT and income tax leakage through internet trading platforms.
  • Self-funded work-related training A consultation paper was published examining how to extend the existing tax relief framework to self-funded work-related training by employees and the self-employed.
  • English business rates The next revaluation of business property in England will be brought forward one year to 2021, with three-yearly revaluations thereafter.

Many of these documents will eventually result in legislation, but that does not mean no tax changes in the interim. The impact of last November’s Budget (and some earlier measures) will soon be felt with the start of the new tax year.

If there are any issues from our Spring Statement summary that you would like to discuss in more detail, or if there is anything we can help you with, please get in touch with us.

2018/2019 Tax Tables

Our new Tax Tables for the 2018/19 tax year are up-to-date with everything announced in the Spring Statement, giving you all the key numbers in one place.

Key changes for the forthcoming 2018/19 tax year include:

  • Increases to the personal allowance, and basic and higher rate tax thresholds.
  • New income tax bands and rates for Scotland.
  • A cut in the dividend tax allowance from £5,000 to £2,000.
  • Revised company car tax scales, with an increase in the diesel levy.
  • The first increase in the lifetime allowance since 2010.
  • An increase in the maximum tax relievable investment in Enterprise Investment Schemes.

If you have any questions about the contents of our Tax Tables or how any aspects of your tax and financial planning may be affected by the Budget, please call us to discuss them.

“Well, that’s higher than I expected!” – How to Reduce Your Next Personal Tax Bill

Well, that’s higher than I expected!͟- How to Reduce Your Next Personal Tax Bill

January 31 has been and gone, and many business owners are still reeling from the sting of a higher-than-expected personal tax bill.

It’s never fun when that brown envelope from HMRC lands on your doormat, stating in no uncertain terms that you owe £X when you were expecting £Y.

But what can you do about it? There’s little point arguing after the fact, so it’s time to get prepared for next year’s bill. And in this blog post, we take a look at three simple steps to avoid the shock of another eye-wateringly large number leaving your bank account.

How Can I Reduce My Tax Bill?

Step 1. Understand What You Owe

One of the main culprits when it comes to surprise tax bills is something called payments on account.

It will typically catch out individuals in their first year of trading, but it’s a tricky little complication for even the most seasoned of business people.

Here’s how it works: When your tax bill passes the £1,000 threshold, you will be required to pay an advance of next year’s tax bill, half of which is due on January 31, with the second instalment due on July 31.

Each payment is calculated as half of the previous year’s tax bill, based on your combined tax and National Insurance contributions (NIC).

For example, if your total tax bill for 2017-18 was £3,000, each payment on account for 2018-19 would be £1,500. So, instead of paying £3,000 as expected on January 31, you’re actually paying £4,500. And suddenly you’re faced with a cash flow problem and a demand for payment from an organisation who don’t take too kindly to non-payers (we’ll explain what you need to do if you can’t pay later in the post).

If your profit varies from year to year, the payments on account will vary too. You might need to overpay one year, in which case you’ll receive a refund, or you might underpay, in which case you’ll
be charged interest. You do have the option to use the refund to offset against a future tax bill on your tax return, which can give you some breathing room when the next bill arrives.

Why does this payment exist?

From your point of view, asking for 18 months worth of tax in one lump sum might seem like overkill, but if you put yourself in HMRC’s shoes, it does make sense.

If you were working in a typical job where PAYE is deducted monthly, the government will receive your tax and NIC the very next month. However, if you’re submitting your own tax return, your bill is due to be paid the following January. This means it can take months or even years before the government receives tax on the money you’ve earned.

Why does this payment exist? From your point of view, asking for 18 months worth of tax in one lump sum might seem like overkill, but if you put yourself in HMRC’s shoes, it does make sense. If you were working in a typical job where PAYE is deducted monthly, the government will receive your tax and NIC the very next month. However, if you’re submitting your own tax return, your bill is due to be paid the following January. This means it can take months or even years before the government receives tax on the money you’ve earned.

Payments on account was introduced to shorten that time between self-assessment tax payments by almost a year.

And don’t forget NIC

Your Income tax is calculated as 20% of your net profit less your personal allowance, on earnings up to £45,000 (Basic rate), 40% on earnings between £45,001 and £150,000 (Higher rate), and 45% on earnings over £150,000 (Additional rate).

Where many business people leave themselves open to yet another surprise addition to their personal tax bill is in forgetting that they will owe Class 2 and Class 4 NIC, to be calculated and collected at the same time. Make sure you’re factoring those into your calculations.

Step 2. Start Saving Now; Switch to the Cloud

You’ve experienced the shock of a huge tax bill, and it wasn’t nice. And the only way of avoiding yet another nasty surprise next time around is to plan for next year.

Start by setting aside some time each month to review your bookkeeping activities. If up until now you’ve been reactive to the money you’ve earned, it’s time to be proactive. Calculate your profits, forecast your cash flow, and start saving money for tax. There’s little point in sweeping all of your earnings into your personal bank account if you’re only going to leave yourself short come the following January.

And now that you’re well aware of payments on account, you can make sure you’re saving more each month to keep yourself covered.

Make the switch to cloud accounting

If you haven’t already, then now’s the time to embrace the cloud. Using a cloud accounting platform such as Xero, you can further enhance the accuracy of your savings by seeing a real-time view of your financial performance. Quickly calculate your take-home pay less expenses and estimated tax, and make sure you’re putting enough aside to meet your liabilities.

Plus, it’s good practice to build a cash reserve should you run into a particularly challenging cash flow situation.

Step 3. Work with a Tax Expert

Now that you understand what you owe, and you’ve started to build your savings, the next step is to learn how to minimise your tax liabilities throughout the course of the current tax year.

Of course, this can be very challenging, especially as you have a business to run, and you won’t always have time to dig into the allowable expenses related to your industry.

That’s why we recommend you lean on the expertise of a tax advisor. They can help you identify tax saving opportunities of which you were perhaps unaware.

And it should come as little surprise that those business people who typically receive lower tax bills are the ones who remain proactive and organised throughout the year, working closely with their accountants to pinpoint savings and claim for the correct expenses.

Follow their lead and you too will avoid another scary tax bill.

What If I Can’t Pay?

If you can’t pay your tax bill, first thing’s first: Don’t panic.

It’s important that you submit your tax return as normal, otherwise, you will be fined. And the longer you leave it, the larger the fine.

Next, discuss the situation with HMRC. They’re not your enemy, even if they’re the ones after your hard-earned cash. They’ll take you through your options, and you may be given the opportunity to either delay your payment or pay via instalments.

Bookmark this link, just in case.

Avoid the Shock with Saint & Co.

Following steps, one and two will shape your understanding of, and relationship with, tax.

Following step three can bring your bill down. And we can help you take that step.

From offering expert advice to keeping you organised and minimising your liabilities, our friendly team is ready to change your approach to tax. And together, we’ll make this the last year you received a shock tax bill!

Simply fill out our contact form, or call us on 01228 534371 to get started.

Scottish Farm Grants – Small Farms Grants and New Entrants Capital Grants Scheme

Scottish farming grants currently available include the above two grants. It is recommended that anyone thinking of applying for the scheme should read the full guidance, which is available at

Small Farms Grants

As such, a small farm is defined as between 3 and 30 hectares (7.4 to 74 acres) and the funding for this grant is up to £25,000. The general aim of the grant is to improve stock control, prevent crop damage by deer, improve conditions for out wintered stock, store winter fodder and improve grassland management. The grant is open to owner occupiers, tenants with more than 3 years remaining on their tenancy and landlords where the tenancy has less than 3 years remaining. Owners who issue grazing licences are not deemed to have eligible tenancies for these grant schemes. If a sole trader, the gross income threshold is £30,700, couples being £41,000, and evidence, being the latest P60 from employment, and/or last accounts must be provided.

New Entrants Capital Grants Scheme

New Entrants Capital Grants Scheme is aimed at new farmers, who must apply within 5 years of commencing farming, and they must be head of holding, carrying out an eligible agricultural activity on the holding. If applying for these grants, you can not apply for another grant in relation to the same project. In general, up to 90% if a group, 80% if an individual, of a project cost could be funded by the grant, if you qualify as a young farmer and farm LFA land. With non LFA land, up to 60% of the project could be funded, again if qualifying as a young farmer.

Although covering some points above, the full scheme guidance is too lengthy to write here, however, the project costs can cover-

  • Erection and improvements to permanent buildings to house out wintered stock
  • Works in relation to yards and silos (excluding grain silos)
  • Slurry and muck storage (SEPA will need involved)
  • Field and hill drainage, including ditches
  • Out wintered stock hard feed areas, including fixed barriers/troughs and concrete
  • Stock handling improvements
  • Shelter belts and utilities improvements and provision
  • Access tracks to land improvement areas

For reference, a suggested minimum building size is 5 x 6m, with a suggested appropriate size of 9 x 14m. This could be increased if you can demonstrate you would require bigger, should you have only cattle, this size would no doubt need increased.

Quotes for works, together with supporting documents will need provided when applying and claiming a grant and failure to do so may revoke the grant offer, so care is needed here. Any works that are hoped to be partially funded by a grant should not be started before a grant offer is awarded. Once a grant is approved, an authority to proceed letter is sent out, together with a claim form. Your local area office will also be involved, and may make site visits to ensure you have done work in line with the application.

How do I apply?

The electronic application form for the Small Grants Scheme or New Entrants Capital Grants Scheme is available at—sfgs-necgs-application-form/

To be able to apply, your business must be registered with the Scottish Government Integrated Administration and Control System (IACS). A link to them is

Should you wish to discuss your project in more detail, our farming team will be happy to help. Will Robinson in Carlisle can be contacted on 01228 534371 or email , or alternatively you could contact a land agent who will be able to assist.

RDPE – Improving Forestry Productivity Grants

What can you apply for?

If you are a private forest holder (more than 10 hectares) or a small/medium sized forestry contractor and based in England, you should look at the guidance on the above grant scheme if you are thinking of expanding or renewing equipment. The grants cover up to 40% of the costs, with a minimum grant of £35,000 (maximum £1,000,000). The guidance is available at

The grants are aimed at investment in equipment, adding value to felled timber and working collaboratively, with priorities being to improve productivity, grow a business, encourage collaboration and to create higher value products.

The costs eligible for the grant funding are reasonably extensive, however, below is a summary of the different equipment types;-

Initial harvesting – harvesters, forwarders, trailers, cranes, grabs, winches, skylines.

Processing – chippers, trommels, firewood processors, log splitters, covered processing areas, woodchip stores, fencing material creation equipment and preservative application equipment.

How do I apply?

If you are considering applying, you should read all the guidance, and be aware that the equipment must be owned out right before a grant is paid. If you apply, and are notified that your application is successful, only then should you order the equipment. The RPA will look at varying financial assurances that the equipment can be paid for, including the last three years accounts, and only once paid in full will a grant be paid. The application form can be found at

The deadline for applications to this scheme is 3 April 2018, and the RPA suggest you should aim for all the work/equipment to be bought/paid for by 31 March 2019. The very final date to claim the grant is 15 January 2020.

If you would like to discuss any of the above with us, or need any help on the application, then please do not hesitate in contacting our agricultural and forestry team throughout Cumbria and South West Scotland, or Will Robinson at our Carlisle Office 01228 534371


Advantages of furnished holiday lettings

furnished holiday letting

Many of the recent changes in the taxation of buy to let rental businesses do not apply to property businesses that qualify as furnished holiday lettings (FHL).

In particular the restriction on deductibility of finance costs that started to apply from 2016/17 does not apply to furnished holiday lettings. It may be worth considering investing in such properties to take advantage of a number of other generous tax breaks.

Tax reliefs that apply to furnished holiday letting businesses

Furnished holiday letting businesses are treated like a trading business for many, but not all tax purposes.

  1. Capital allowances are available on furniture and equipment such as cookers, washing machines, beds.
  2. Profits count as earned income for pension purposes
  3. CGT entrepreneurs’ relief applies on disposal of the holiday rental business
  4. Capital gains may be rolled over into FHL property
  5. CGT gift holdover relief available on the gift of the rental business.

Note that inheritance tax business property relief does not generally apply on the transfer of FHL property businesses.

What is a furnished holiday letting (FHL) businesses?

There are strict rules for a property rental business to qualify as furnished holiday lettings. The most important conditions are:

  1. Property must be situated in the UK or European Economic Area (EEA)
  2. Furnished and let on a commercial basis
  3. Available for letting for 210 days a year
  4. Actually let for 105 days a year
  5. Not normally let for more than 31 consecutive days to the same person (i.e. short lets)
  6. In other words lettings in excess of 31 days are excluded from the 105 day test as are periods let to family and friends on a non-commercial basis

Averaging Election

For individual landlords the 210 day and 105 day tests apply to the tax year or the first 12 months on commencement of the rental business.

If the 105 day test is not met it is possible to make a “pooling” or averaging election where several FHL properties are rented out in the tax year. You can elect to apply the letting condition to the average rate of occupancy for all the properties you let as FHLs. There are separate elections or pools of UK and EEA properties.


Countering the challenges of managing a transient workforce for hotels

Countering the Challenges of Managing a Transient Workforce for Hotels

Even if you haven’t heard the term ‘transient workforce’, chances are you’ve seen it in action. A transient worker – sometimes described as a contingent worker – is typically defined as an individual who works away from a traditional work base, such as a freelancer or contractor. However, in the context of the hotel and hospitality industry, a transient workforce has come to mean a staff who are engaged on a non-permanent basis.

Governed by seasonality, the hotel industry is heavily reliant upon a casual and fluid workforce. And there are certainly positives to employing transient workers; in particular, it allows the hotel to better control labour costs, supplement departments during busy periods, and respond quickly to business opportunities. But it’s not without its challenges.

In this blog post, we take a brief look at those challenges, put forward some solutions, and explain why better management of a transient workforce can deliver tangible business benefits for your hotel.

What are the challenges of utilising a transient workforce?

Given the very nature of a transient workforce, if the underlying organisational structure of your hotel is not up to scratch, things can become quickly chaotic. For instance, staff turnover can be high, which makes the tracking and management of shifts complicated. And if you don’t have the correct systems and processes in place, forecasting labour costs and seasonal fluctuations is nigh on impossible.

Another major challenge of employing a transient workforce is compliance. Employment records, work permits, health and safety certificates; everything needs to be up-to-date and above board. But with such a fluid workforce, the risk of getting caught out remains high.

And this guest post on Sales & Marketing Management asks a very pertinent question: With a transient workforce is there still team spirit? From a culture perspective, this is a very real issue for hotels – how do you get buy-in from staff members who don’t view their job as anything more than a short-term contract?

At-a-glance: Transient Workforce Challenges

  • Tracking and managing shifts
  • Forecasting labour costs
  • Forecasting seasonal fluctuations
  • High levels of staff turnover and absence
  • Lack of team spirit
  • Compliance challenges

What’s the solution?

When it comes to countering the challenges of employing a transient workforce, we believe there are low hanging fruit solutions and a solution that requires a little more reaching.

Where the former is concerned, internal organisation is vitally important and can be vastly improved in a relatively short space of time by introducing the right systems and processes. By standardising workflows and utilising cloud-based technology, you can accurately and effectively track labour costs. You can also take steps towards minimising or eliminating manual processes, such as timesheets, leading to better shift management and resource allocation.

However, the latter solution will require a great deal more work. Once the organisational elements have been addressed, you need to switch your focus to the culture within your hotel. To make the most of employing a transient workforce, you need to empower them with a sense of pride and purpose. Your culture is the glue that holds your staff together, ensuring that they work towards the common goal of delivering high levels of customer service and, ultimately, increased profits.

When your hotel’s staff turnover is high, this can be difficult to achieve. By improving your hotel’s culture, from onboarding new staff, to recognising and rewarding hard work, you can reduce staff turnover and absences, and increase team spirit.

What are the benefits to better management of a transient workforce?

As we mentioned at the start of this blog post, there are some real tangible benefits to improving your management of a transient workforce. These include:

1. Improved standards of customer service

For the hotel and hospitality industry, the importance of word-of-mouth and online reviews simply cannot be understated. By improving organisation and culture within your hotel, you can create an environment in which your staff are committed to delivering a high level of customer service, which will, in turn, improve your hotel’s reputation and drive business.

2. Improved staff job satisfaction

Likewise, an enhanced organisational structure and culture will result in better levels of job satisfaction among your staff. This brings with it the benefits of decreasing staff turnover and reducing costs related to recruitment and training. Keeping your best staff for the duration of their contract will save you money and provide you with a base upon which to grow.

3. Increased profits

Finally, the biggest benefit to improving the management of transient employees is its impact on your profits. High staff turnover is costly, as is recruitment and training, so minimising these costs can boost your bottom line.

Do You Employ Transient Workers? We Can Help

Working closely with a number of hotel and hospitality clients over the years, we’ve witnessed first-hand the changing employment landscape in the UK. As we’ve outlined above, a transient workforce has its benefits and its challenges, and we’ve helped many hotels navigate the pitfalls associated.

We can help you do the same by improving your internal systems and processes, and offering you guidance to enhance your hotel’s culture.

Simply fill out our contact form, or call us on 01228 534371 to get started.

Why getting your accounts done early will help your business grow

Why Getting Your Accounts Done Early Will Help Your Business Grow

Growing a successful business often requires a steady mix of disciplines. From skill and determination to sales and marketing, you need to wear many hats as an entrepreneur.

But perhaps the most important when pursuing growth is your ability to be organised. And we don’t just mean remembering to send the odd invoice or running payroll on time – although those are important.

No, we mean being organised throughout every facet of your business. And perhaps none more so than the financial management side of things. If you are able to stay on top of your finances and get your accounts done early, it will, in fact, help your business grow.

Here’s why:

It will save you time

When it comes to running and growing a business, time is scarce. So we imagine this particular reason will be music to the ears of every stressed out business owner: getting your accounts done early will save you time. Lots of it.

And with that saved time, you’ll have the opportunity to turn your attention back to the parts of your business that you enjoy. You’ll have room to breathe as you plot a path towards growth and prosperity, identifying new customers, suppliers, and markets along the way.

The business owners who leave things late tend to be reactive, as opposed to proactive. They’re often scrambling towards a tax deadline, panicking as they rummage through drawers looking for receipts and purchase orders. Their noses are pressed too close to the puzzle, and they’re never more than an unexpected expense away from a crisis.

But the organised, proactive entrepreneurs? They see the whole picture. Working with their accountants, they have the information they require to make big decisions, and the time in which to make them.

It will save you money

And who doesn’t want to save money?

Getting your accounts done early will open your eyes to a whole host of money saving opportunities. From tax planning to budgeting and forecasting, you’ll be working from a position of strength if you have the right information in front of you.

For example, with an understanding of the current tax position, you can work with your accountant to mitigate business and personal tax liabilities. Of course, this will only be a viable option if you are organised well in advance of looming tax deadlines.

Likewise, when it comes to budgeting, it’s vital that you use only the most accurate and up-to-date financial information available. This will give you an opportunity to identify savings and forecast cash flow in line with your growth aspirations. If you leave getting your accounts done late, next year’s budget may need to be amended at considerable cost and effort, and if you’ve taken decisions based on inaccurate financial information, it could have disastrous consequences.

And remember, time is money

When you’ve saved time and saved money, you’ll have more time in which to invest said money. This is vital to facilitating growth, as, without these two resources, you’re essentially standing still.

Getting your accounts done early is a major part of putting yourself in the best position possible to grow your business. While some entrepreneurs have succeeded over the years going off of a gut feel and possessing an uncanny ability to be in the right place at the right time, many more achieve success through careful planning and execution.

When you give yourself the time to think and plan – and you find ways to save money that can be reinvested into your business – you’ll find yourself on the right track for growth and prosperity.

Need a Proactive Accountant? Let’s Talk

We’ve been in business for over 130 years. In that time we’ve opened no fewer than 12 offices across the UK. So, we like to think we know a thing or two about growing a business.

We can help you become more organised and more focused on growth, saving you time and money in the process.

Simply fill out our contact form, or call us on 01228 534371 to get started.